Planning a trip to Iceland? My guide to the coolest hotels in Reykjavik guarantees your accommodation will be as memorable as your holiday!
When it comes to quirky and unique cities around the world, Reykjavik has to be one of my top picks! The architecture, scenery and activities are unlike anywhere else on the planet. One minute you can be wandering the rainbow painted streets, the next you’re popping into Hallgrímskirkja Church, which looks more like a rocket than a place of worship!
Hop in a car and after a short journey you could be bathing in the thermal waters of the Blue Lagoon, or experiencing the island’s volcanic scenery. It’s a very special place for a holiday, and it’s no wonder it’s become so popular over the years.
I’m someone who loves picking quirky and unique accommodation. On many trips I’ve found that the hotel provides just as memorable an experience as the destination I’m exploring. I’m thinking back to visiting jungle lodges in Costa Rica and shepherd’s huts in the UK!
If, like me, you also love your accommodation to match your adventures, I’ve got some very cool hotels to recommend in Reykjavik. The city has a wide range to choose from, each with distinct personality and charm. And while you might have heard it’s an expensive destination, I’ll be sharing a few options that are a little more budget-friendly too.
Whether you’re looking for a luxury resort, a cosy boutique hotel, somewhere with quintessential Icelandic design, or somewhere that won’t break the bank, Reykjavik has something for everyone.
Ready to plan your trip? Here’s my pick of the coolest hotels in Reykjavik.
The Coolest Hotels in Reykjavik
Hotel Borg
I had to kick off with one of the most iconic hotels in Iceland. The Art Deco masterpiece, Hotel Borg, is easily one of the best hotels in Reykjavik. It overlooks the beautiful square of Austurvöllur, right in the heart of the city centre, and is close to the city’s restaurants, shops, and art galleries. When you step inside, it really feels like the Art Deco architecture and luxurious interiors have transported you back to the golden age of travel.
One of the best things about staying at Hotel Borg is the luxurious service on offer to all guests. If you’re looking for things to do, the team will help arrange one of the hotel’s unique holiday packages to see the northern lights or visit sights including Gullfoss waterfall and Thingvellir National Park. I love that they take care of logistics so you can relax and enjoy your holiday!
Reykjavik Centrum Hotel
If you love your hotels with a big slice of history, I’d definitely recommend this one! It’s located in a restored 18th-century building and has retained many of its original features, such as wooden beams and exposed brick walls. The bedrooms are smart, furnished in traditional Icelandic style with crisp linen and modern furnishings.
This hotel works as a great base for exploring the city’s sights, with attractions such as the Harpa Concert Hall and the Icelandic Parliament close by.
ION City Hotel
There are quite a few cool places to stay in Reykjavik, but on my next trip I’d love to check into the ION City Hotel. It’s the second project by the ION hotel chain, a brand who always create amazing architectural wonders. As an aside, you have to check out the ION Adventure Hotel, which I featured in my guide to the coolest hotels in Iceland.
This luxurious boutique hotel offers sleek and comfortable rooms, many with floor-to-ceiling windows framing the city views. Plus, when it comes to unique touches, I think it’s pretty cool to find Icelandic lava stones as part of the decor! It’s a great location too, right on Laugavegur, Reykjavik’s main shopping street.
If you don’t fancy venturing far, check out Sumac restaurant, which serves an exciting mix of Icelandic, Lebanese and Moroccan dishes.
Canopy by Hilton Reykjavik City Centre
If you’re looking for modern hotels in Reykjavik, I’d recommend checking out Canopy by Hilton. This hotel is just a short walk from the city centre. The hotel’s rooms are decorated in a contemporary style and feature local artwork and photography.
A lot of the reviews mention how lovely the communal spaces are within the hotel too, so you’ll have plenty of areas to relax and unwind after a day of sightseeing. If you’re looking for an active way to explore, the hotel offers free bike hire to all guests too!
The Reykjavik EDITION
I’m a big fan of the Edition brand of hotels. They’re always chic and comfortable, with stylish design touches. This city centre hotel is located right near Solfar Sun Voyager.
The rooms are spacious and beautifully designed, many with views over the harbour. Plus, there’s a great restaurant for those times when you can’t quite be bothered to go out!
Reykjavik Marina Hotel – Berjaya Iceland Hotels
This hotel is a fab option that really merges Icelandic culture and maritime heritage. It’s located right by the Old Harbour, and offers picture-perfect views of the marina. The interiors reflect the outside world too, with lots of nautical-inspired decor.
It’s one of the coolest hotels in Reykjavik with playful and quirky touches dotted throughout. I love the cosy lobby, with its eclectic mix of vintage furniture and contemporary art. The hotel’s restaurant, Slippbarinn, is a great place to try modern Icelandic cuisine. Plus, the bar is famed for its great cocktails, so don’t miss out on a little pre-dinner treat!
101 Hotel
If you’re looking for a more intimate and personalised experience, I’d recommend looking at boutique hotels in Reykjavik. There are quite a few smaller, more relaxed accommodation options in the city, which provide you with a unique and memorable stay.
101 Hotel is one of my favourite boutique hotels in Reykjavik. This centrally-located design hotel has a sleek and modern interior, along with an Icelandic contemporary art collection.
Also, part of the hotel is Kitchen & Wine, a trendy restaurant that serves traditional Icelandic and international cuisine. It also features special menus for both happy hour and brunch.
Kvosin Downtown Hotel
Searching for the for coolest hotels in Reykjavik? Dating back to 1990, the small and charming Kvosin Downtown Hotel offers amazing views of Reykjavik Cathedral and the Icelandic Parliament.
All 24 rooms have spacious living areas and stylish Scandinavian décor. The hotel is also home to Bergsson Restaurant and Klaustur Wine Bar, perfect for nights when you don’t fancy venturing far from the comfort of your bedroom.
Sand Hotel by Kea Hotel
This hotel in Downtown Reykjavik one of my favourites! It’s got a wonderful mix of historical charm and modern design. It’s located just above a bakery too, so you’ll have unlimited access to the delicious scent of delicious bread and pastries during your stay!
The walls are adorned with contemporary artworks and there are plenty of cool items of furniture dotted throughout the boutique hotel. If you like staying in small-ish hotels which feel effortlessly cool, San Hotel is a great option.
Eyja Guldsmeden Hotel
Another of the coolest hotels in Reykjavik, this cute option has décor inspired by nature and Icelandic traditions. Its design features eco-friendly materials and organic textures. The hotel even makes its own organic toiletries.
Plus, for an extra touch of luxury, every room features a 4-poster bed. It’s not bang in the city centre, but the walk is easy, or you can hop on a bus or in a taxi.
Budget-Friendly Hotels In Reykjavik
Fosshotel Rauðará
If you’re looking for something private, but would like to keep costs down, there are some really great affordable hotels in Reykjavik. One of my top recommendations is Fosshotel Rauðará. It’s a little way from the main buzz of the city, but it’s only a short walk to the sights.
Some of the rooms look a little bit tired in places, but they’re still very comfortable, and you’ll get to save some money for activities and meals. There are some rooms that are ideal for families too, sleeping 2 in a double and another 2 on a sofa bed.
22 Hill Hotel
Another budget-friendly choice is the 3-star 22 Hill Hotel, located just outside the city centre in the up-and-coming 105 neighbourhood.
You can easily hop on public transport to get to the sights, or enjoy a leisurely walk in. The hotel has a cool, contemporary design, with plenty of Nordic-inspired touches throughout.
Kex Hostel
Travelling on a budget doesn’t mean you have to compromise on comfort. There is some accommodation in the Icelandic capital which is perfectly acceptable. One of the most popular options is Kex Hostel, located in a former biscuit factory in the up-and-coming Grandi neighbourhood.
The trendy hostel has a friendly, laid-back vibe, with plenty of communal spaces to relax in, including a bar, restaurant, and outdoor patio. It’s a great place if you’re looking to meet like-minded travellers. There’s a shared kitchen and other communal spaces, so you’ll naturally interact with others. The best part? The price! You can score a room in a dorm from as little as £20, or a private room from around £70 per night. What a bargain for Reykjavik.
Loft Hi-Eco Hostel
Another great option if you’re looking for hostels in Reykjavik, is Loft Hostel. The is another very stylish hostel with modern, minimalist design. There’s plenty of natural light and a spacious common area where you can socialise.
There’s also a communal kitchen, so you can cook a few meals and save your spending money for attractions and activities!
I hope my pick of the coolest hotels in Reykjavik helps you decide where to stay. Whether you’re looking for 5-star luxury, a cute boutique hotel or a clean and comfy hostel, I’m sure there’s something that will fit your needs!
If you’re looking for other great accommodation options for your trip, don’t miss my guide to the coolest hotels in Iceland.
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